House OKs 5-year freeze in new wireless taxes

AP News
Posted: Nov 01, 2011 5:51 PM
House OKs 5-year freeze in new wireless taxes

The House has approved a five-year freeze on any new state and local taxes targeted at cellphones and other wireless services, including wireless broadband access.

Supporters of the legislation say states increasingly have taxed wireless mobile services as they have become more prevalent, and that most states now impose taxes that far exceed average sales taxes on other items.

Rep. Zoe Lofgren, the California Democrat who co-sponsored the bill, says wireless customers now pay 16.3 percent in taxes and fees, more than double the average rates for other goods and services. She says the freeze is needed to encourage the development and adoption of wireless broadband.